Union Budget 2023-24 focuses on green growth

As a part of the Union Budget 2023-24, the finance minister has announced several key measures that build on the government’s focus on green growth.

Key announcements

  • National Green Hydrogen Mission will facilitate the transition of the economy to a low carbon intensity and reduce dependence on fossil fuel imports. India targets to reach an annual production of 5 mt by 2030.
  • An allocation of Rs 350 billion has been proposed for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum and Natural Gas. Further, battery energy storage systems with capacity of 4,000 MWh will be supported with viability gap funding.
  • The inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh has been proposed with an investment of Rs 207 billion including central support of Rs 83 billion.
  • Additionally, a Green Credit Programme has been proposed to be notified under the Environment (Protection) Act for encouraging behavioural change by incentivising environmentally sustainable and responsive actions by companies, individuals and local bodies.
  • To further provide impetus to green mobility, it has been announced to extend the custom duty exemption for import of capital goods and machinery required to manufacture lithium-ion cells for batteries used in electric vehicles.

Budgetary allocation

  • For 2023-24, the net budgetary allocation for the Ministry of Power has been pegged at Rs 206.71 billion (as against Rs 160.74 billion budgeted in 2022-23). The total investment by its eight state-owned power companies has been proposed at Rs 608.05 billion for 2023-24 (as against Rs 514.70 billion budgeted in 2022-23).
  • The net budgetary allocation for the Ministry of New and Renewable Energy has been pegged at Rs 102.22 billion for 2023-24 (as against Rs 69 billion budgeted in 2022-23).
  • Nuclear Power Corporation of India Limited (NPCIL) received an allocation of Rs 94.10 billion for 2023-24. Additionally, NPCIL will raise Rs 128.63 billion through internal and extra budgetary resources. Meanwhile, the Department of Atomic Energy has been allocated Rs 250.78 billion.